Brazil Bouncing Back; 4% Output Growth Expected

ByJohn S. McClenahen The auto industry probably will lag behind other industrial sectors as Brazil recovers from its economic downturn. But there are solid signs that South America's largest and most influential economy is on the way up. Overall economic output is expected to grow by 4% this year, figures the National Industry Confederation, with industry growing even faster at 6%. And Odair Abate, chief economist for Lloyds Bank, says that Brazilian business in general, not only privatized companies, is attractive to investors. Indeed, the bank expects Brazil to attract US$25 billion in foreign direct investment this year. Telecommunication is currently attracting the most interest.